The tort auto insurance system is the most common type of auto insurance system in the country. Currently 38 states operate under a tort system compared with only 12 states that operate under some form of no-fault insurance. Under a tort auto insurance system, if you are involved in an auto accident, the person who is at fault for causing the accident is responsible for paying the other party’s medical expenses. The at-fault person may have to pay for additional damages for pain and suffering as well as lost wages.